Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Reading The Popes: John XXIII's Mater et Magistra On The Economy

    On the issue of the economy today there are many people in America that fill the vacuum of the various political theories, across the political spectrum - we have those who are libertarian or leaning libertarian, socialists, communists, capitalists or free-market supporters, conservatives, liberals, and those that even fall somewhere in the middle of those political beliefs. Recently tensions have been running high between unions, businesses, and other citizens concerning the various clash of opinions on whether or not the unions are in fact a burden on both the State and its citizens, particularly with regards to how much tax is appropriate for a taxpayer to be required to pay to support the wage of a union member. In the Papal document Mater Et Magistra Pope John XXIII refers to Rerum Novarum a papal encyclical by Pope Leo XIII and says: 

    " As is well-known, the outlook that prevailed on economic matters was for the most part a purely naturalistic one, which denied any correlation between economics and morality. Personal gain was considered the only valid motive for economic activity. In business the main operative principle was that of free and unrestricted competition. Interest on capital, prices--whether of goods or of services--profits and wages, were to be determined by the purely mechanical application of the laws of the market place. Every precaution was to be taken to prevent the civil authority from intervening in any way in economic matters. The status of trade unions varied in different countries. They were either forbidden, tolerated, or recognized as having private legal personality only."

    Today are unions merely tolerated here in the U.S.? Or does their standard of pay either fall in line with or exceed that of similar private sector jobs? Does the U.S. citizen pay taxes (generally speaking, minus the exception of the most recent bailouts) towards what a private sector employee earns? No. But each of us does pay a tax which goes toward supporting the pensions, health benefits, and salaries of both public sector union members and other public sector employees. Are these public sector employees putting too much of a burden on the State and forcing the average citizen to pay excessive taxes? My answer is yes. The unions and other public sector jobs today have more of a responsibility to garner the citizens' approval as to whether their wages are too high or too low or are earning a decent wage or not. Today do we forbid the unions existence? Or the right to peacefully assemble? Do we have unions who are merely tolerated? No. No. No. I am not quite sure why there is a problem with unions only having private legal personality.

    Today union members are far better off than many who hold compatible private sector jobs. The outcry from the public which demanded a decent living and decent working conditions that occurred during the late 19th Century and the beginning of the 20th Century were appropriate for that time when there were no laws in place to protect either the worker or a safe work environment but today there are laws in place protecting public unions wages and the conditions of the work environment so when people protest in the streets acting like irrational children, acting like they are being persecuted or mistreated in some way while demanding that they should be paid more and compensated with more benefits than employees who hold similar private sector jobs today is deceptive, absurd, unfounded and illegitimate. The way that some public sector union employees are forcing other citizens to contribute more money than they themselves do towards their own health insurance benefits which burdens both the State and the citizens at a time when our debt and deficits are at an all-time high in this country is unbelievable and unconscionable to me.

    "It is furthermore the duty of the State to ensure that terms of employment are regulated in accordance with justice and equity, and to safeguard the human dignity of workers by making sure that they are not required to work in an environment which may prove harmful to their material and spiritual interests."

    While nothing is ever foolproof from error I believe that this has largely been achieved in our country.

    "They concern first of all the question of work, which must be regarded not merely as a commodity, but as a specifically human activity. In the majority of cases a man's work is his sole means of livelihood. Its remuneration, therefore, cannot be made to depend on the state of the market. It must be determined by the laws of justice and equity. Any other procedure would be a clear violation of justice, even supposing the contract of work to have been freely entered into by both parties.

    "Secondly, private ownership of property, including that of productive goods, is a natural right which the State cannot suppress. But it naturally entails a social obligation as well. It is a right which must be exercised not only for one's own personal benefit but also for the benefit of others."

    Is work becoming a rare commodity nowadays? There are more people than ever in our history reliant on the government for some type of benefit, whether it be welfare, food stamps or medicaid. Since Barack Obama took office in 2009 the number of recipients receiving food stamps has more than doubled and under Obama's budget for 2011 will increase spending on the welfare programs by 42% over President Bush's last year in office, with Obama's budget to spend $1.43 trillion on the medicare and medicaid programs. There is a difference between assisting someone in financial need and aiding their irresponsible lifestyles or behavior. This to me seems like Obama & Company are treating jobs for citizens as a commodity, while doing all the wrong things to spur growth and create jobs then saying it is a moral duty for the "rich" to pay even more taxes than the huge amount they already do to support his welfare state recipients. Obama and the rest of the progressives are making individuals and families dependent on the government which is in my opinion at least as bad, if not worse, than one's livelihood being dependent on the state of the market.

    Pope John XXIII rightly points out that "it is advisable for the contract to be modified so that 'wage-earners and other employees participate in the ownership or the management, or in some way share in the profits.'"

    This would be an example of where distributism comes into play. This is a third type of economic philosophy - Catholic Social Teaching - which was formulated by such thinkers as G.K. Chesterton and Hilaire Belloc. I think instituting the principles of this philosophy in our society would help to alleviate many problems which crony capitalism has caused in our society today.

    "According to distributism, the ownership of the means of production should be spread as widely as possible among the general populace, rather than being centralized under the control of the state (state socialism) or a few large businesses or wealthy private individuals (plutarchic capitalism). A summary of distributism is found in Chesterton's statement: 'Too much capitalism does not mean too many capitalists, but too few capitalists.'

    "Essentially, distributism distinguishes itself by its distribution of property (not to be confused with redistribution of capital that would be carried out by most socialist plans of governance). While socialism allows no individuals to own productive property (it all being under state, community, or workers' control, with exceptions such as mutualism), distributism itself seeks to ensure that most people will become owners of productive property. As Belloc stated, the distributive state (that is, the state which has implemented distributism) contains "an agglomeration of families of varying wealth, but by far the greater number of owners of the means of production.'This broader distribution does not extend to all property, but only to productive property; that is, that property which produces wealth, namely, the things needed for man to survive. It includes land, tools, etc.'" - Wikipedia article on distributism

    "Pope Pius XI further emphasized the fundamental opposition between Communism and Christianity, and made it clear that no Catholic could subscribe even to moderate Socialism. The reason is that Socialism is founded on a doctrine of human society which is bounded by time and takes no account of any objective other than that of material well-being. Since, therefore, it proposes a form of social organization which aims solely at production, it places too severe a restraint on human liberty, at the same time flouting the true notion of social authority."

    I am in full agreement with both Pope John XXIII and Pope Pius XI on the matter of Socialism and Communism, that both political philosophies "places too severe a restraint on human liberty."

    "Of special doctrinal and practical importance is his [that is, Pius XI's] affirmation that 'if the social and individual character of work be overlooked, it can be neither justly valued nor equitably recompensed.'In determining wages, therefore, justice demands that account be taken not only of the needs of the individual workers and their families, but also of the financial state of the business concern for which they work and of 'the economic welfare of the whole people.'

    Unions today are not taking into account the needs of other workers and their families or the financial burden they have on businesses today. The Unions, union bosses, and many union members feel entitled to whatever amount of money and benefits regardless of how it affects anyone else.

    " It should be stated at the outset that in the economic order first place must be given to the personal initiative of private citizens working either as individuals or in association with each other in various ways for the furtherance of common interests.
    But--for reasons explained by Our predecessors--the civil power must also have a hand in the economy. It has to promote production in a way best calculated to achieve social progress and the well-being of all citizens."

    Today, it would seem that in America the civil power has much more than a hand in economic affairs, but in fact have both hands, both feet, arms, and legs involved in our economy.

    "And in this work of directing, stimulating, co-ordinating, supplying and integrating, its guiding principle must be the 'principle of subsidiary function' formulated by Pius XI in Quadragesimo Anno, 'This is a fundamental principle of social philosophy, unshaken and unchangeable. . . Just as it is wrong to withdraw from the individual and commit to a community what private enterprise and industry can accomplish, so too it is an injustice, a grave evil and a disturbance of right order, for a larger and higher association to arrogate to itself functions which can be performed efficiently by smaller and lower societies. Of its very nature the true aim of all social activity should be to help members of the social body, but never to destroy or absorb them.'"

    The federal government has become a huge albatross held over the heads of Americans today. The social philosophy of subsidiarity is one method that needs to be applied in order to save our economy from collapse. The federal government is putting undue fiscal burdens on the states.

    "But however extensive and far-reaching the influence of the State on the economy may be, it must never be exerted to the extent of depriving the individual citizen of his freedom of action. It must rather augment his freedom while effectively guaranteeing the protection of his essential personal rights. Among these is a man's right and duty to be primarily responsible for his own upkeep and that of his family. Hence every economic system must permit and facilitate the free development of productive activity."

    The number of recipients receiving food stamps has more than doubled since Bush left office and now it is reported that 43.6 million Americans are now receiving food stamps today. President Obama has increased spending on welfare programs by 42 percent over President Bush's last year in office. The promoters of a welfare state or the welfare state mentality are not promoting the human dignity of the person and freedom of the person by allowing persons to be dependent on the State but in fact are doing the opposite by promoting this dependency mentality. Progressives are enabling the person to avoid fulfilling his "right and duty to be primarily responsible for his own upkeep and that of his family." This quite frankly is irresponsible on so many fronts.

    "Experience has shown that where personal initiative is lacking, political tyranny ensues and, in addition, economic stagnation in the production of a wide range of consumer goods and of services of the material and spiritual order--those, namely, which are in a great measure dependent upon the exercise and stimulus of individual creative talent.

    Political tyranny and the lack of personal initiative go hand in hand. If one is not going to be rewarded for one's initiative when that produces success or even penalized by the State why would someone continue on this path of displaying personal initiative?

    "Where, on the other hand, the good offices of the State are lacking or deficient, incurable disorder ensues: in particular, the unscrupulous exploitation of the weak by the strong. For men of this stamp are always in evidence, and, like cockle among the wheat, thrive in every land."

    In America I think we have a case of the weak being exploited by the State to further a tyrannical political agenda. But I am also of the opinion that there are those in corporate America who are in some ways exploiting the weak or those less fortunate.

    "In a system of taxation based on justice and equity it is fundamental that the burdens be proportioned to the capacity of the people contributing."

    "As it affects the less developed countries, the problem is stated thus: The resources of modern hygiene and medicine will very shortly bring about a notable decrease in the mortality rate, especially among infants, while the birth rate--which in such countries is unusually high--will tend to remain more or less constant, at least for a considerable period. The excess of births over deaths will therefore show a steep rise, whereas there will be no corresponding increase in the productive efficiency of the economy. Accordingly, the standard of living in these poorer countries cannot possibly improve. It must surely worsen, even to the point of extreme hardship. Hence there are those who hold the opinion that, in order to prevent a serious crisis from developing, the conception and birth of children should be secretly avoided, or, in any event, curbed in some way."

    Was Pope John XXIII writing under divine inspiration? Today progressives are propagating that births should be avoided in third world countries to solve the problem of hunger and extreme hardship. It is amazing and sad that his predictions became a reality.

    "Besides, the resources which God in His goodness and wisdom has implanted in Nature are well-nigh inexhaustible, and He has at the same time given man the intelligence to discover ways and means of exploiting these resources for his own advantage and his own livelihood. Hence, the real solution of the problem is not to be found in expedients which offend against the divinely established moral order and which attack human life at its very source, but in a renewed scientific and technical effort on man's part to deepen and extend his dominion over Nature. The progress of science and technology that has already been achieved opens up almost limitless horizons in this field."

    "As for the problems which face the poorer nations in various parts of the world, We realize, of course, that these are very real. They are caused, more often than not, by a deficient economic and social organization, which does not offer living conditions proportionate to the increase in population. They are caused, also, by the lack of effective solidarity among such peoples."

    "We must solemnly proclaim that human life is transmitted by means of the family, and the family is based upon a marriage which is one and indissoluble and, with respect to Christians, raised to the dignity of a sacrament. The transmission of human life is the result of a personal and conscious act, and, as such, is subject to the all-holy, inviolable and immutable laws of God, which no man may ignore or disobey. He is not therefore permitted to use certain ways and means which are allowable in the propagation of plant and animal life."

    "Human life is sacred--all men must recognize that fact. From its very inception it reveals the creating hand of God. Those who violate His laws not only offend the divine majesty and degrade themselves and humanity, they also sap the vitality of the political community of which they are members."

    NO ABORTION!! - MURDERING OF INNOCENT HUMAN LIFE

    NO EUTHANASIA!!

    NO GOVERNMENT-RUN HEALTH CARE RATIONING

    NO SAME SEX "MARRIAGE"

    NO EMBRYONIC STEM CELL RESEARCH!

    NO ARTIFICIAL INSEMINATION OR IN VITRO FERTILIZATION!

    Here are some closing remarks from Pope John XXIII:

    "It has been claimed that in an era of scientific and technical triumphs such as ours man can well afford to rely on his own powers, and construct a very good civilization without God. But the truth is that these very advances in science and technology frequently involve the whole human race in such difficulties as can only be solved in the light of a sincere faith in God, the Creator and Ruler of man and his world."

    "We most earnestly beg all Our sons the world over, clergy and laity, to be deeply conscious of the dignity, the nobility, which is theirs through being grafted on to Christ as shoots on a vine: "I am the vine; you the branches." They are thus called to a share in His own divine life; and since they are united in mind and spirit with the divine Redeemer even when they are engaged in the affairs of the world, their work becomes a continuation of His work, penetrated with redemptive power. "He that abideth in men, and I in him, the same beareth much fruit."

    "Thus is man's work exalted and ennobled--so highly exalted that it leads to his own personal perfection of soul, and helps to extend to others the fruits of Redemption, all over the world. It becomes a means whereby the Christian way of life can leaven this civilization in which we live and work--leaven it with the ferment of the Gospel."


    Crossposted at Catholibertarian Source URL: http://outlawrepublican.blogspot.com/search/label/economics
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Jeff Miron on How To Fix Our Health Care System

EAGLE FREEDOM LINKS -- 4-3-11 -- Liberals Exposed Edition

Czech President is Correct When Opposing UN Intervention in Economics

    From Reuters: UNITED NATIONS, Sept 25 (Reuters) - Czech President Vaclav Klaus on Saturday criticized U.N. calls for increased "global governance" of the world's economy, saying the world body should leave that role to national governments.


    The solution to dealing with the global economic crisis, Klaus told the U.N. General Assembly, did not lie in "creating new governmental and supranational agencies, or in aiming at global governance of the world economy."

    "On the contrary, this is the time for international organizations, including the United Nations, to reduce their expenditures, make their administrations thinner, and leave the solutions to the governments of member states," he said.

    Klaus appeared to be responding to the address of the Swiss president of the General Assembly, Joseph Deiss, who said on Thursday at the opening of the annual gathering of world leaders in New York that it was time for the United Nations to "comprehensively fulfill its global governance role."

    Deiss suggested the world body should get more involved in economic and financial issues and not leave them solely in the hands of forums like the Group of 20 club of key developed and developing nations.

    Klaus, a free-market economist who oversaw a wave of privatization in the 1990s after communism collapsed in his homeland, also said the world was "moving in the wrong direction" in combating the economic crisis.

    "The anti-crisis measures that have been proposed and already partly implemented follow from the assumption that the crisis was a failure of markets and that the right way out is more regulation of markets," he said.

    Klaus said that was a "mistaken assumption" and it was impossible to prevent future crises through regulatory interventions and similar actions by governments.

    That will only "destroy the markets and together with them the chances for economic growth and prosperity in both developed and developing countries," he said.

    The Czech president, a vocal skeptic of global warming, said the United Nations should also keep out of science, including climate change. U.N. Secretary-General Ban Ki-moon has made fighting climate change one of his top priorities. (Editing by Paul Simao)

    Klaus is spot on!! Source URL: http://outlawrepublican.blogspot.com/search/label/economics
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Generation Zero Movie Trailer


    Generation Zero - 60 Second Movie Trailer from Citizens United on Vimeo.

    Generation Zero is a documentary about the current economic crisis seen from a cultural perspective. Citizens United created the movie, they are the same folks that created “Hillary The Movie” and whose lawsuit brought about the recent Supreme Court ruling on campaign finance.

    Here is a brief synopsis from GenerationZeroMovie:

    The current economic crisis is not a failure of capitalism, but a failure of culture. Generation Zero explores the cultural roots of the global financial meltdown - beginning with the narcissism of the 1960's, spreading like a virus through the self-indulgent 90's, and exploding across the world in the present economic cataclysm.


    Generation Zero goes beneath the shallow media headlines and talking head sound bites to get to the source of today's economic nightmare. With a cutting edge style and haunting imagery, this must see documentary will change everything you thought you knew about Wall Street and Washington.

    Featuring experts, authors, and pundits from across the political spectrum, Generation Zero exposes the little told story of how the mindset of the baby boomers sowed the seeds of economic disaster that will be reaped by coming generations.


    H/T goes to Another Black ConservativeSource URL: http://outlawrepublican.blogspot.com/search/label/economics
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Exagggeration, Lies, & Blame Game Vs. TRUTH & REALITY

    It seems to me that it is either impossible for Obama to see the truth and reality related to his increased spending versus his predecessor’s spending, or he‘s willfully ignoring the reality and truth . Either way, Obama is clearly as blind as a bat. Bush did overspend. But Obama has accelerated the spending and it has turned into a pandemonium of government spending. In addition, the Obama administration continues the blame game. This is the first President in history, that is an irresponsible crybaby, and that has also filled his administration with a bunch of whiny crybabies. Obama has continued to blame and complain about Bush’s prior spending like a naïve little boy. Obama continues to complain about spending when he could halt spending in certain governmental agencies at any time. But, I guess that solution hasn’t come to Obama or his administration’s mind at any time. How come all these supposed geniuses are so blind? Irresponsible in the worst way? And, they continuously refuse to do the obvious to reduce our deficits. Hmmmm… Obama, his administration, and the Democrats clearly DO NOT want to make any budget cuts or decrease funds for any agency or program to decrease the deficit. Instead they are going on a government spending binge. Plus, Obama makes it obvious that he loves playing the blame game. If they reduced the deficit than the Obama admin couldn’t point to this huge deficit and keep on exaggerating and blaming the Bush admin for the deficit. Obama has increased the deficit by 3X what Bush left him with. The Obama admin is all about illusions, exaggeration, and lies.



    But, the Obama administration is making it clear that they are continuing with their modus operandi, and keeping allegiance to the failed liberal philosophy of increased government spending. Obama needs to freaking STOP this runaway freight train of spending before it literally wrecks this country. STOP In the Name of Love! Obama STOP for the love of this country. Stop bankrupting this country into oblivion. Please stop pillaging the American people’s wallets!! Please stop stealing from future generations! So, Mr. President, Stop in the Name of LOVE!!!

    Here is a fun video and an interesting article below.




     Ten Years Ago? Seriously? By: Keith Hennessey 

    On Monday when releasing his budget the President said:



    The fact is, 10 years ago, we had a budget surplus of more than $200 billion, with projected surpluses stretching out toward the horizon. Yet over the course of the past 10 years, the previous administration and previous Congresses created an expensive new drug program, passed massive tax cuts for the wealthy, and funded two wars without paying for any of it -– all of which was compounded by recession and by rising health care costs. As a result, when I first walked through the door, the deficit stood at $1.3 trillion, with projected deficits of $8 trillion over the next decade.


    This is a common refrain from the President and his team.

    Argument: The previous administration and previous Congresses created an expensive new drug program … without paying for any of it.


    •Response 1: Yes, we did. At the time, Congressional Democrats tried and failed to create an even more expensive new drug program without paying for it. (Mr. Obama was not in the Senate at the time.)

    •Response 2: This Medicare drug program is ongoing. If the President thinks it is too expensive, then he should propose to make it less expensive. If instead he thinks it should be paid for, then he should propose other spending cuts or tax increases to offset the future costs. Pending health care legislation would instead expand this expensive benefit and pay for the expansion, but would do nothing about paying for the ongoing base costs to which the President is objecting. The past six years of deficit spending from this benefit is beyond President Obama’s control. The future spending is not. He could do this through reconciliation with 51 votes in the Senate.


    Argument: The previous Administration and Congresses funded two wars without paying for it.


    •Response 1: The Obama Administration is continuing these wars without paying for them, and expanding forces in Afghanistan without paying for that.


    •Response 2: Two of those years were with Democratic majorities in the House and Senate. There were legislative attempts to end the Iraq efforts, but none to end the Afghanistan efforts. I don’t remember anyone in the Democratic majority Congress (including then-Senator Obama) making a serious run at cutting other spending or raising other taxes to offset the war costs. Last year Rep. Obey proposed a war tax and was quickly silenced by his colleagues.


    Argument: The previous Administration cut taxes for the wealthy without paying for it.


    •Response 1: Setting aside the mischaracterization “for the wealthy,” President Obama proposes to extend a significant portion of that tax relief “without paying for it.”


    •Response 2: If all the Bush tax cuts are left in place bracket creep will soon cause total federal taxes to once again climb above their historic average of just over 18% of GDP. Repealing these tax cuts would mean the government would be taking far more from the private sector in taxes than it has in the past. I believe taxes are not too low.


    •Response 3: Our medium-term and long-term deficit problems are driven by the growth of entitlement spending: Social Security, Medicare, and Medicaid. Raising taxes will not slow this spending, it will just buy us a few years of delay and slow economic growth.
    CONTINUEDSource URL: http://outlawrepublican.blogspot.com/search/label/economics
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Why Health Care Will Never Be Equal - By Gregory Mankiw

    This semester, I am taking Principles of Macroeconomics at college. I found an excellent editorial related to the health care debate written by Gregory Mankiw, who actually wrote my college textbook. As I found it very interesting, I hope that you do, also.

    EVERY morning, I take a small white pill that makes me think deep philosophical thoughts about the American health care system, the value of life, and the relationship between man and state. No, it is not some illegal psychedelic left over from the 1960s along with my tie-dyed T-shirts. But if you bear with me, I bet this pill will have the same effect on you.

    The pill is a statin — a type of pharmaceutical developed over the last few decades to lower a person’s cholesterol. My father died of cardiovascular disease, and unfortunately I inherited his genetic predisposition. Yet I am hoping that modern medicine will help me avoid his fate. So like millions of middle-age men, I take my little pill every morning.

    Here is the question I ask as the pill passes through my lips: Is it worth it?
    Now you might be tempted to say, “Of course it is.” Most people would prefer to avoid an early death. If the wonders of modern science might put off the inevitable for a while longer, why not give it a shot?

    And that is, indeed, how I thought about the decision when my doctor recommended the treatment. One thing I did not consider was the price. Like most consumers of health care, I was insulated from economic concerns. I knew that the insurance company — and, indirectly, all its policyholders — would pick up most of the tab. This arrangement, encouraged by the tax system, ensures that I get the benefit of the pills while paying little of the extra costs they generate.

    An optimist might hope that my doctor, or someone higher up in the health care hierarchy, made a rational cost-benefit calculation on society’s behalf. To figure out whether my treatment makes sense, one would have to weigh the cost of the drug against the benefit of an extended life. And to do that, one would have to put a dollar value on my life — the kind of calculation that makes everyone but economists squirm.

    Not long ago, I read that a physician estimated that statins cost $150,000 for each year of life saved. That approximate figure reflects not only the dollars patients and insurance companies spend on the treatment but also — and just as important — an estimate of how effective it is in prolonging life. (That number is for men. Women have a lower risk of heart disease.)

    That estimate is, at best, approximate, but it certainly suggests that preventive care is not always cheap. The magnitude of the figure also brings to mind hard questions of political philosophy. CONTINUEDSource URL: http://outlawrepublican.blogspot.com/search/label/economics
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